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Home My WebLink About[10] Legislative UpdateCrr~° OF s~: J(1'+ErH Council Agenda Item MEETING DATE: August 6, 2009 AGENDA ITEM: Legislative Update -Representative Larry Hosch SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: Annually Representative Hosch appears before the Council to provide an update on issues and listen to concerns. BUDGET/FISCAL IMPACT: ATTACHMENTS: REQUESTED COUNCIL ACTION: No Action Required Larry Hosch State Representative Assistant Majority Leader District 14B Stearns County r a~~~~ l ~i1tjC! 1nneSOta House of Representatives COMMITTEES: AGRICULTURE, RURAL ECONOMIES AND VETERANS AFFAIRS FINANCE DIVISION Jul 12 2009 HEALTH CARE AND HUMAN SERVICES FINANCE DIVISION ~' ~ PUBLIC SAFETY FINANCE DIVISION COMMERCE AND LABOR Ms. Judy Weyrens City of St. Joseph 25 College Ave N PO Box 668 St. Joseph, MN 56374 Dear Ms. Weyrens Now that the 20091egislative session has drawn to a close, I want to take this opportunity to update you on actions affecting local governments. This was one of the most challenging legislative sessions in Minnesota's history, given the state's unprecedented $6.4 billion budget deficit. In working to close this deficit, the House, Senate, and Governor each offered budget solution frameworks-all calling for some new revenue. The House and Senate proposed new revenue ranging from $1 to $2 billion, and the Governor proposed nearly $1 billion in borrowing through bonds that would need to be paid off with interest over the next 20 years. After the Legislature compromised on a lower amount of new revenue and offered deep spending reductions, a final balanced budget was presented to the Governor that, importantly, protected local government aid. However, in the closing days of the session Governor Pawlenty abruptly announced his intention to sign all of the Legislature's finance bills, reject the means to pay for them, and unilaterally balance the budget via unallotment. I am very concerned that his proposed unallotments will have devastating ramifications for cash strapped local units of governments, many of whom are still dealing with the Governor's $110 million unallotment of LGA from last December. Clearly, the potential detrimental impact on our local fire, police, streets, libraries, and parks cannot be overstated. On July 1, the Governor carried through with his plan to unallot $44.6 million from cities this year, which amounts to a decrease of $22 per capita in 2009 and $55 per capita in 2010. For the city of St. Joseph, this amounts to a reduction of $ 88,571 in 2009 and $ 20,4367 in 2010. Given the seriousness of the cuts in the second year, my colleagues and I pledge to work with the Governor in the coming session to try to work out an agreement to reduce these painful cuts in 2010. I will keep you posted, and will appreciate any advice you have on the matter. I also wanted to take this opportunity to update you on some of the other measures enacted into law this year that will affect local government. 565 State Office Building 100 Rev Dr Martin Luther Kino Jr Blvd St Paul. Minnesota 55155-1298 ___ (6511 296-4373 FAX: (651) 296-2080 Email: rep.larry.hosch@house.mn (800) 947-8264 Local governments will receive mandate relief in the form of various measures contained in a package of reforms. These include: • The Legislature, with limited exceptions, established two effective dates a year for state administrative rules that require local government ordinance and regulation changes. This will create a more streamline process for updating local government ordinances in response to state administrative rule changes. • Statutory caps on fees for town fence viewers are eliminated. • Local city councils and county commissioners are allowed to immediately reduce their salary, something prohibited under current law. • Requirements for counties to have notices of claims printed in the newspaper are eased. Local governments also authorized to print notices in smaller papers, often at a lower cost. • The need for local governments to review statutorily required out-of--state travel policies on an annual basis is eliminated. • The monetary threshold triggering the construction and development fee reporting requirement was temporarily increased from $5,000 to $10,000. • Counties are given more authority to set pay for county clerks, auditors, treasurers, recorder/abstractors, and sheriffs. • Requirements for towns and counties accepting responsibility for abandoned cemeteries and public burial grounds are eased. • The $10 statutory cap on booking (for jail) fees is eliminated. The bill authorizes counties to cover costs incurred in the booking process. • Vehicle registration fees are allowed to be paid by credit card or debit card and registrars are allowed to charge a surcharge to offset the credit card fee. An 18-month moratorium was imposed on the implementation of new or increased maintenance of effort (MOE) or matching fund requirements that require spending by a political subdivision. To avoid causing a problem with the new federal stimulus bill that may require some increased spending, the counties and cities will remain responsible if the city or county is currently providing the federal MOE or match and the federal government increases those requirements. The Legislature passed a compromise measure to deal with non-conforming lots in shoreland areas. This legislation is the result of years of negotiations between local governments, the Department of Natural Resources, surveyors, realtors, and builders. The bill addresses various nonconformities that currently prohibit the owners of nonconforming shoreland lots from transferring or building on the property. The law requiring short-term offenders (those felony-level offenders whose remaining term of imprisonment is for 180 days or less) to be incarcerated in local jails was repealed in order to save the counties money. A process will be established for communities to request and receive the designation of "Communities for a Lifetime." "Communities for a Lifetime" must have available in their communities various services for seniors which enable them to continue to be contributing, civically engaged residents. Such services will include an array of home and community-based services to help seniors remain in an independent living setting as they age and become frail. The law was strengthened dealing with vacant, abandoned, or problem properties in order to protect the value of surrounding properties, reduce criminal activity, and enhance neighborhood livability. For example, cities are granted the authority to request a reduction in the redemption period when a foreclosed property is abandoned. Local units of government are authorized to impose administrative fines for certain traffic offenses. A city, county, or town is authorized to issue emer~ency debt certificates if both of the following occur in a fiscal year: 1) the governmental unit's current year revenues are expected to be reduced below their budgeted amounts; and 2) the reduction is so large that current year expenses will exceed current year receipts. Local governments are allowed to recertify their few by January 15 of the year in which the levy is paid if it has a reduction in its December property tax aid and credit payments due to a Governor's unallotment. If the recertification is not reported to the county auditor within two business days of January 15, the original levy certification stands. The formula for distribution of revenues from the wind enerQV production tax for 2010 and thereafter is modified so that 80% of the revenues are distributed to the county and 20% to the city or township. Under current law, the distribution is 80% to the county, 14% to the city or township, and 6% to the school district. In cases where only part of a township participates in the medical services district, all partial townships in the district will be represented by a single member on the Emer~ency Medical Services Taxing District Board. Under the new Minnesota False Claims Act, private sector employees are given financial incentives to "blow the whistle" on their employers for knowingly defrauding state and local government. Counties will now be allowed to provide for cremation of any person receiving assistance through MFIP as an alternative to a traditional funeral. Several measures were enacted to help mitieate the impacts of transportation construction on local small businesses. For example, it is now required that the local road authority consult with affected businesses before and during construction to plan signage that will mitigate adverse effects on businesses during the construction. The Commissioner of Transportation may make a grant to any political subdivision for replacement or rehabilitation of afracture-critical bridge. $10 million in bonds is allocated for local bridge replacement and rehabilitation. 1 hope this information is useful. It is an honor to represent our community in the Minnesota House of Representative, and I look forward to our continued association. Thank you for your service to our neighbors. Sincerely, Larry Hosch State Representative